Hours after an all-night summit of euro governments ended, flaws began to emerge in a package that was billed as a âgrand and comprehensiveâ solution to the European debt crisis.

The concerns were led by Germanyâs powerful central bank, which expressed fears that a plan to leverage a â¬440&#8201;billion eurozone rescue fund to amass a âfire powerâ of â¬1&#8201;trillion, or Â£880&#8201;billion, resembled the risky finance methods that triggered the crisis in 2008.

EU leaders are expected to sanction the establishment of a so-called special purpose investment vehicle, or SPIV, to be set up in the coming weeks. It is aimed at attracting investment from countries such as China and Brazil.

Jens Weidmann, the president of the Bundesbank and a member of the European Central Bank, sounded the alarm over the plan to âleverageâ the fund by a factor of four to five times without putting any new money into the pot.

He warned that the scheme could be hit by market turbulence with taxpayers left holding the bill for risky investments in Italian and Spanish bonds.

Incompetent criminal scammers.
Details are coming out: northern banks don't need to raise capitals. French banks will increase capital not paying out dividends.
Italian UniCredit is less safe than Dexia.
And Irish banks are safe. You read it right, let's all repeat it out loud: IRISH BANKS are SAFE.

Oh I forgot: German banks, hugely leveraged and stuffed with subprime and toxic assets, how much capital will they need ? Only 5 billion LOL
This is the german-french banksters' plan: favor german-french investement banks, and punish southern traditional banks.